Elections and Use of Bond Proceeds
Building Funds and Revenue Sources
Tax Questions
IRS and Compliance
Miscellaneous
100
How long do you have to spend bond proceeds?
Within 36 months of the bond closing.
100
How much of the first 25.0 mills - the Uniform Rate of Tax (URT) is guaranteed by the State?
98% (Unless District produces more than foundation funding amount from URT)
100
When a homeowner turns 65, what happens to the assessed value of their primary place of residence?
The assessed value will be frozen, if the homeowner notifies the County Assessor.
100
Can a district reimburse itself for project expenditures made prior to issuance of bonds?
Yes, however a reimbursement resolution may be required.
100
True or False: School districts are required by State law to hire a fiscal agent when bonds are issued.
True.
200
When can a school district hold a special millage election?
A special election can be held in any month prior to the annual school election.
200
Name two possible district funded sources of construction project funds?
Voted bond issue/new millage, second lien bond, short term debt (such as lease purchase agreement), refunding savings
200
Once the assessed value of a home has been frozen, how could there be an increase in the school taxes owed for that home?
If the voters approve a school millage increase.
200
True or False: A school district is not required to collateralize construction bond proceeds above the FDIC limit.
False.
200
What does the term call date mean as related to a bond issue?
It is the first date that the bonds can be paid off/called.
300
What percentage of construction bond proceeds must be spent or obligated within six months from the closing date?
5%.
300
True or False: Building Fund balances, not including bond proceeds, may not be transferred to the Operating Fund.
False.
300
If an Arkansas resident invests in an Arkansas school district bond, the interest income will be taxed by the federal government, the state government, both, or neither?
Neither, the interest income would be exempt from federal and state income taxes.
300
Name two acceptable investment instruments that may be received by school districts to collateralize construction bond proceeds.
US Treasuries, bank CDs, Arkansas bonds, some Federal agencies, and some local agencies
300
True or False: A second lien bond requires voter approval.
False. Only school board and State Board of Education approval is required.
400
How much is a school district allowed to spend on a "Vote Yes" election campaign?
$0
400
What type of mill can give the district the most flexibility, M&O, Dedicated M&O, or Debt Mill?
Debt Mill.
400
What occurs when a district earns a higher interest rate on the bond proceeds than the interest rate they are paying on bond issue?
Arbitrage.
400
What is an advantage of issuing less than $10 million in tax-exempt debt in a calendar year?
The debt can be designated as "bank-qualified" or BQ.
400
What is the maximum size bond issue that can be issued for teacher salaries?
$0
500
Name two of the three documents required to be published by a district prior to an election.
Proposed Budget of Expenditures, Notice of Annual School Election, and Notice of Polling Sites.
500
True or False: Unspent construction bond proceeds may be transferred to Maintenance and Operations?
False.
500
True or False: A school district can issue taxable and/or tax-exempt debt.
True.
500
What two District reports must be filed annually with the MSRB as part of the District's continuing disclosure requirements?
The annual audit and an annual financial report.
500
What is the maximum term for non-bonded debt, such as a lease purchase agreement?
10 years, except approved energy saving issues may be up to 20 years
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